(IDEX Online News) – Indian Prime Minister Narendra Modi’s attempts to make the country a major mineral producer, may now include seeking the participation of producers such as Rio Tinto and De Beers according to a report in The Economic Times.

Mines secretary Balvinder Kumar said that the government will start to auction the rights to up to 70 diamond and gold exploration zones to mining companies this year.

Kumar recently said that De Beers and Rio Tinto, the latter of which has already discovered a cluster of eight diamondiferous pipes in central India, have not been too receptive to the idea, citing high risks of failure. Kumar said that to allay these fears, the government would reimburse companies’ exploration costs.

The blocks, which each cover over 100 square kilometres, are located in the states of Madhya Pradesh, Chhattisgarh, Jharkhand and Rajasthan among others. Companies that win the exploration rights will be able to transfer those rights to another party within three years if they wish, and the rights will then be auctioned again for actual mining.

India has not produced diamonds for many years and produces only a small amount of gold, although it is the world’s second largest consumer of the precious metal.